Economic Growth Projected 4-5.1% in 2021

Domestic and global economic conditions in 2021 are predicted to enter the recovery stage although they are still slowing down because there is still the potential for a second wave to occur as reflected in the pandemic situation that is still spreading and increasing in several countries, many countries showing slowed reopening and several other countries with partial lockdowns. Especially for China, which managed to contain the virus and recover to pre-Covid levels.

President Director of BNI Asset Management (AM), Putut Endro Andanawarih said, next year there will be a trend of economic recovery and one sign of recovery is inflation which will be higher than this year. Bank Indonesia's interest policy, which is relatively stable at the level of 3.75-4%, is in line with the rising inflation rate. But there is still the potential for a 25-50 bps rate cut from the current level," he said in the 2021 Webinar Market Outlook with the theme "Resilience to Counter Economic Turbulence" in Jakarta, Tuesday (17/11).

From BI data, inflation for the second week of November 2020 was 0.21% every month. Then on a calendar year basis 1.17% and an annual basis 1.53%. The main contributors to inflation were purebred chicken meat at 0.08%, red chilies at 0.03%, chicken eggs, and red onions at 0.02%. Then cooking oil, tomatoes, and garlic experienced inflation of 0.01% month to month.

Putut said the projected economic growth at the level of 4-5.1% (upside risk at 6%) in 2021, driven by a gradual recovery from the re-opening of the economy, especially when vaccines can be distributed. , as well as government spending and stimulus programs, are still quite solid. The 10-year SUN yield is estimated to move in the range of 6.27 - 6.65% (risk 7.3%) supported by local liquidity and the return of foreign investors to the bond market in Indonesia, "He explained.

He added that in 2021 if the risk of the pandemic doesn't end soon, it could become a global supply risk in the medium term. Therefore, according to him, the condition of the domestic and global economy in 2021 is predicted to enter the recovery stage although it is still slowing down because there is still the potential for a second wave to occur.

Meanwhile, the performance of BNI Asset Management (BNI AM) still recorded positive business performance even amid the Covid-19 pandemic. This asset management company owned by BNI is still recorded to have recorded total assets under management (AUM) or managed funds of Rp. 24.64 trillion. "With assets under management as of October 2020 of IDR 24.64 trillion, BNI Asset Management can still record 15% AUM growth since the beginning of 2020," said BNI Deputy President Director Adi Sulistyowati.

He said the positive performance was due to the synergy between all management, investors, and the efforts of its parent, BNI. So that currently BNI AM is included in the ranks of the 10 largest asset management companies in Indonesia.

Link. https://www.neraca.co.id/article/139069/pertumbuhan-ekonomi-diproyeksikan-4-51-di-2021